Male Osa’s machine shop uses 2,500 brackets during the course of a year, and this usage is
relatively constant throughout the year. These brackets are purchased form a supplier 100
miles away for $15 each, and the lead time in 2 day. The holding cost per bracket per year is
$1.50 (or 10% of the unit cost) and the ordering cost per order is $18.75. There are 250
working days per year.